Sony Computer Entertainment lay-offs due to industry change

Sony Computer Entertainment lay-offs due to industry change - Image 1Recently, Sony Computer Entertainment Europe announced that around 10% of their employee base would have to be “let go” to reduce costs for the company. While many speculated that the lay-offs had something to do with less than stellar PlayStation 3 sales performance, SCE spokesperson Satoshi Fukuoka denied that they had any relations to the slow start of Sony’s next-gen console.

Sony’s game division has lost an approximated US$ 1.7 billion for the last fiscal year, which made many analysts speculate that the PlayStation 3 has been the biggest “sink factor” to Sony’s earnings growth, despite good leverage in the consumer electronics market. In contrast, the PlayStation and PlayStation 2 have sold more than 100 million units each around the world, allowing Sony to be the leading console brand in the $30 billion video game market over the past decade.

Instead, Fukuoka attributed the job slashing to the alleged changes in the game industry, which had a lot to do with the rise of online digital content distribution. The jobs of some employees had become “redundant” and some services were no longer needed by the company.

Fukuoka also said that Sony Computer Entertainment America and Japan may also see “streamlining” to their operations in the future, although he had admitted that there were no final decisions made so far.

Via Reuters

Sony Computer Entertainment lay-offs due to industry change - Image 1Recently, Sony Computer Entertainment Europe announced that around 10% of their employee base would have to be “let go” to reduce costs for the company. While many speculated that the lay-offs had something to do with less than stellar PlayStation 3 sales performance, SCE spokesperson Satoshi Fukuoka denied that they had any relations to the slow start of Sony’s next-gen console.

Sony’s game division has lost an approximated US$ 1.7 billion for the last fiscal year, which made many analysts speculate that the PlayStation 3 has been the biggest “sink factor” to Sony’s earnings growth, despite good leverage in the consumer electronics market. In contrast, the PlayStation and PlayStation 2 have sold more than 100 million units each around the world, allowing Sony to be the leading console brand in the $30 billion video game market over the past decade.

Instead, Fukuoka attributed the job slashing to the alleged changes in the game industry, which had a lot to do with the rise of online digital content distribution. The jobs of some employees had become “redundant” and some services were no longer needed by the company.

Fukuoka also said that Sony Computer Entertainment America and Japan may also see “streamlining” to their operations in the future, although he had admitted that there were no final decisions made so far.

Via Reuters

Add a Comment

Your email address will not be published. Required fields are marked *